Off the Record, On the Issues with John

House passes H.R. 1 preserving credit unions’ tax-exempt status Senate action and advocacy efforts continue; take action now to protect interchange.

By John Alexander, DakCU Director of Legislative & Regulatory Affairs
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Credit Union Tax Status Remains Secure with House Passage of Reconciliation Bill
In a significant win for the credit union movement, the House of Representatives passed H.R. 1 last Thursday by a narrow 215-214 vote, preserving the industry’s not-for-profit tax status. The bill, widely referred to as the House’s budget reconciliation package, advanced without touching the long-standing tax exemption for credit unions.

“Thank you to the U.S. House of Representatives for securing credit unions' not-for-profit tax status as part of H.R. 1 and recognizing the industry's importance to strong Main Streets across the country,” said Jim Nussle, President and CEO of America’s Credit Unions. “More than 142 million Americans trust and rely on credit unions to achieve their American Dream, and this bill allows them to continue on their path of financial freedom.”

Ahead of the vote, over 600 credit union CEOs and presidents signed a joint letter urging lawmakers to protect the tax status.

Next, the Senate will take up the bill following the Memorial Day recess. If changes are made, the bill will return to the House before heading to the president’s desk.

DakCU urges continued advocacy. Visit Don’tTaxMyCreditUnion.org to contact your senators and thank your House members. So far, the campaign has generated 832,000+ grassroots messages and 122 million digital ad impressions.

Let’s keep the momentum going to protect our tax status.

Update to GENIUS Act
Senators Marshall and Durbin are expected to try attaching the Credit Card Competition Act as an amendment to the GENIUS Act on stable coins. It's still unclear if or when a vote will occur—possibly as soon as tomorrow, or it could be delayed until after the Memorial Day recess. It’s also not certain if amendments will be allowed on the GENIUS Act.

Credit union advocates are encouraged to begin contacting their senators now to oppose any interchange-related amendments. You can take action through the Interchange Works site: https://protectinterchange.com.
A letter opposing interchange amendments was sent to Senate leadership today, and a previous letter supporting the GENIUS Act was submitted during its committee markup. Additional updates and grassroots actions will follow once the situation becomes clearer.
 
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